We use 1281 mutual funds rated with one to five stars by Morningstar, a trapezoidal approximation for evaluating 4SD and propose a new cumulative 4SD measure with superior properties for statistical inference. An appendix describes a new maximum entropy (ME) bootstrap for dependent time series....
The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-...
Recently, we established a fund rating approach based on the EU-E decision model and Morningstar ratings. In this paper, we apply the approach to US mutual funds and construct portfolios using the best rated funds. Furthermore, we evaluate the performance of the fund ratings based on EU-E ...